https://www.taxtmi.com/caselaws?id=759974 Section 14 moratorium under the Insolvency and Bankruptcy Code does not prevent invocation or encashment of a performance bank guarantee, because such a guarantee is an independent contractual obligation and not a security interest of the corporate debtor. The moratorium operates against the corporate debtor and its assets, not against the surety bank's liability to the beneficiary. Where no fraud, irretrievable injustice, or other exceptional equity is shown, enforcement may proceed. If the appropriation decision was taken before commencement of CIRP, later invocation letters are consequential and do not invalidate the earlier decision. en-us Mon, 01 Jul 2024 00:00:00 +0530 Fri, 11 Oct 2024 10:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759974 Section 14 moratorium under the Insolvency and Bankruptcy Code does not prevent invocation or encashment of a performance bank guarantee, because such a guarantee is an independent contractual obligation and not a security interest of the corporate debtor. The moratorium operates against the corporate debtor and its assets, not against the surety bank's liability to the beneficiary. Where no fraud, irretrievable injustice, or other exceptional equity is shown, enforcement may proceed. If the appropriation decision was taken before commencement of CIRP, later invocation letters are consequential and do not invalidate the earlier decision. Case-Laws IBC Mon, 01 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759974